With data from 15,000 customers and over 100 insurance executives, consulting firm Capgemini and Efma found that enhancing customer experiences directly impacted insurers’ profitability. “Given the increasing demand of internet and mobile channels in insurance, digital transformation is an effective approach to create positive experiences, secure customer loyalty, and ultimately improve insurers’ profitability,” the report states.
While many insurers say they are working to improve the user experience, ratings have only increased by about 2% worldwide, with only 32% saying they had positive experiences with their provider. Further, nearly 70% of customers reported that they are considering switching carriers. Digital presence is increasingly important in making customers happy, according to the study. For example, while internet-mobile is the least likely channel to offer a good experience, it has the greatest impact when successful. Overall, as Capgemini and the MIT Center for Digital Business found in 2012, firms with a strong digital presence and customer focus are 26% more profitable.
In addition to the new report, Capgemini released the following infographic with their findings:
- Insurers See Worldwide Drop in Customer Satisfaction
- Cyberbreach and Reputation Woes Hack Away at Bottom Line for 44% of Financial Firms
- Company Growth and Compliance Challenge Risk Managers
- Gasification Gets a Big Customer
- P&C Insurers’ Profitability Up in First Half of 2015